The escalating costs of child care in the United States are having a substantial impact on progress made in the workforce.
According to a recent report published by CBS News, the average household now spends over $700 a month on child care. This figure, stemming from a report published by the Bank of America Institute, marks a 32% increase since 2019.
The surge in expenses is so high that it is influencing some parents to exit the workforce in order to care for their children. Soaring child care costs is also found to be causing many families to significantly reduce their savings and spending — potentially damaging overall economic growth in the U.S. More specifically, CBS News cited a study published by ReadyNation in February, which estimated this loss to be around $122 billion annually.
The rising child care costs and the ripple effects that it has on the workforce and economy are alarming. If this trend continues, it could lead to a major transformation of the labor market, with more parents being forced to choose between work and family.
Addressing the rising costs of child care is important to ensure that parents do not have to make the difficult decision between their professional careers and their children. It’s reported that Democratic lawmakers are attempting to address this issue through the introduction of the Child Care Stabilization Act, which aims to allocate mandatory funding to childcare centers. However, the bill faces opposition — casting uncertainty on its passage.